Global stablecoin giant Tether has taken a bold step by investing directly in U.S.-based Bitcoin company Twenty One using Bitcoin. With the newly formed company holding over 42,000 BTC as its initial asset, the transaction grants Tether a 51.7% voting share, giving it absolute decision-making power. More than just challenging MicroStrategy’s Bitcoin reserve model, Twenty One has a broader vision. How does Tether plan to leverage Twenty One to establish a strategic foothold in the U.S. market?

Tether Acquires Controlling Stake in Twenty One with Bitcoin

As previously reported, Tether acquired 8,888 BTC (worth approx. $735 million) in Q1 2025, bringing its total holdings to 92,646 BTC (approx. $7.8 billion), ranking it as the sixth-largest Bitcoin holder globally.

Now, Tether and Bitfinex are contributing 31,500 BTC in exchange for equity in the newly formed company.

Once the deal is completed, Tether will hold a dominant 51.7% voting power in Twenty One.

What Is Twenty One Planning to Do?

According to its investor prospectus, Twenty One not only aims to emulate the Bitcoin reserve strategies of companies like MicroStrategy but also envisions itself as a cultural and financial champion of Bitcoin.

Key initiatives include:

• Producing Bitcoin-themed content and media to strengthen Bitcoin’s cultural presence.
• Building Bitcoin-native financial products such as Bitcoin-backed loans and capital market instruments.

This vision aligns with Tether’s recent actions:

• Aggressive hiring in AI and film production at the beginning of the year.
• A $775 million investment in video-sharing platform Rumble in late 2024, suggesting an early move into media.

In a Bloomberg interview, Twenty One CEO Jack Mallers emphasized:

"We’re not a pivot company. We’re not selling video games or hotel bookings for Bitcoin. We’re a Bitcoin company aiming to provide the blue-chip credibility of Bitcoin."

Tether’s Quiet Expansion into the U.S. Market

Once public, Twenty One will hold 42,000 BTC, worth approximately $3.9 billion, making it the third-largest publicly listed Bitcoin holder in the world.

Initially listed on the Nasdaq under the ticker 'CEP', the company will switch to the symbol 'XXI' after the merger.

This move coincides with growing calls for stablecoin regulations in the U.S., with entities like JPMorgan and the New York Attorney General questioning Tether’s compliance. Some argue stablecoins should only be issued by regulated U.S. entities.

Tether CEO Paolo Ardoino previously stated that he wouldn’t mind if USDT were banned under new U.S. regulations, and that Tether is considering issuing a new U.S.-compliant stablecoin under upcoming laws.

The creation of a U.S.-listed Bitcoin-native company under Tether’s control raises a crucial question:

Is Tether stealthily laying down its roots in the U.S. market?

With deep pockets and strategic positioning, it may just be getting started.